83R3623 ATP-D

By: Giddings H.B. No. 1087

A BILL TO BE ENTITLED

AN ACT

relating to the authority of a parent or legal guardian to establish a consumer file for a child or adult ward and act on the child's or adult ward's behalf with a consumer reporting agency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 20, Business & Commerce Code, is amended by adding Section 20.025 to read as follows:

Sec. 20.025. CONSUMER FILE FOR CHILD OR ADULT WARD; AUTHORITY OF PARENT OR GUARDIAN. (a) In this section:

(1) "Guardian," with respect to a child, means:

(A) a managing or possessory conservator of the child who is not the child's parent; or

(B) a guardian of the person or estate, or both, of the child.

(2) "Guardian," with respect to a ward, means a guardian of the person or estate, or both, of the ward.

(3) "Parent" means a natural or adoptive parent. The term does not include a parent whose parental rights have been terminated.

(4) "Ward" means an incapacitated person for whom a guardian is appointed by a court. The term does not include a person who must have a guardian appointed for the person to receive funds due the person from a governmental source.

(b) A parent of a child younger than 16 years of age or the guardian of a ward who is 18 years of age or older may request a consumer reporting agency to establish a consumer file for the child or ward.

(c) On the request of a parent or a guardian who provides proof of authority required by Subsection (d) or a guardian who provides proof of authority required by Subsection (e), a consumer reporting agency shall establish and maintain a consumer file for the child or ward and shall recognize the authority of the parent or guardian to act on the child's or ward's behalf as provided by this section.

(d) For a parent, a certified copy of the child's birth certificate or, for a guardian, a copy of a court order documenting that the guardian is the managing or possessory conservator or guardian of the child, presented together with a copy of a government-issued identification issued to the parent or guardian, is acceptable proof of authority for purposes of Subsection (c) and is considered "proper identification" for purposes of any provision of this chapter, including Sections 20.031 and 20.034.

(e) A copy of the court order appointing the guardian for the ward, presented together with a copy of a government-issued identification issued to the guardian, is acceptable proof of authority for purposes of Subsection (c) and is considered "proper identification" for purposes of any provision of this chapter, including Sections 20.031 and 20.034.

(f) A parent of a child younger than 16 years of age or a guardian of a ward for whom a consumer file is established under this section has the same authority to act on the child's or ward's behalf with respect to the child's or ward's consumer file as a consumer has to act on the consumer's own behalf under this chapter, including the authority to request the placement or removal of a security alert or a security freeze.

(g) A charge imposed on a consumer under Section 20.04 is imposed on the parent of a child or guardian of a ward for whom a consumer file is established under this section.

(h) A consumer reporting agency may not recognize the authority of an alleged parent or guardian to act on a child's or ward's behalf if the agency receives proof that a court has terminated the relationship under which the alleged parent or guardian assumes authority to act under this section.

SECTION 2. Section 20.037, Business & Commerce Code, is amended by adding Subsection (e) to read as follows:

(e) A consumer reporting agency shall, on the child's 16th birthday, remove a security freeze placed on the consumer file of a child established under Section 20.025 and shall notify both the parent and child in writing at least 30 days before removing the security freeze under this subsection.

SECTION 3. This Act takes effect September 1, 2013.